Marine salvage is the process of rescuing a ship, its cargo and sometimes the crew from danger. Today the protection of the marine environment from cargo and oil spills is also a priority of the salvage operations.
There is no reward for life salvage since all mariners have a duty to save the lives of others in danger without the expectation of a reward.
However, the rescuer is entitled to a salvage award on the salvaged property.
There are two kinds of salvage:
Contract salvage
Pure salvage which is alternatively known as merit salvage.
Contract salvage is either without any agreement or before the commencement of the salvage operations there is a contract between the rescuer and the owner of the cargo or vessel for a fixed remuneration irrespective of the recovery.
In pure salvage the amount of salvage award depends first and foremost on the value of recovery of property. In case additional damage is caused instead of saving anything, there will be no award. The other factors relevant for determination of the reward are the peril in which the salvaged property was placed, the risk exposure, hazards and skills of the salvor, time and money spent in salvage operations, etc. Normally, a pure or merit salvage award does not exceed 50% of the value of the property retrieved. However, this limit does not apply in case of treasure salvage.
There are disputes and differences over salvage rights and awards, which are resolved by the appropriate forum.
